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Danny Alexander the chief secretary to the Treasury has said that he will demand an assurance from fuel suppliers and distributors that they are doing all they can to cut prices further after recent declines in the cost of oil.

This week Brent Crude has slumped as low as $82 (£51) per barrel which is its lowest level in just over four years due to concerns about over supply.motorway-at-night

Petrol in the UK has fallen from 131.7 pence per litre to 124.22 pence which sees a decline of about 6%. For diesel the drop is from 136.37 pence per litre to 1.28.58 pence.

This news has seen the start of the supermarket price war and we are starting to see this locally. The cheapest fuel that we found locally so far is Asda in St. Leonards, they are as of 17.11.2014 selling at 118.7 pence per litre and diesel is currently at 123.7 pence per litre this has also seen Tesco’s and Sainsbury’s following suit with 1p cuts of their own.

The declining price of fuel can only be a good thing for the local economy. The knock on effect that fuel costs have on every aspect of the economy from the distribution of pretty much everything from food to consumer and business products should start coming down in price as the cost of transporting them goes down.

It will also naturally benefit everyone’s customers as they will have more disposable income which could translate into more spending.